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21 STAFF REPORT
TO: Mayor and City Council DATE: July 20, 2023
FROM: Marcus J. Aleman II, Housing Manager
SUBJECT: Multi -Family Affordable Housing Development Proposals for Housing Element Inventory Site B (APN: 689-180-012)
SPECIFIC REQUEST OR RECOMMENDATION
That the City Council authorize staff to produce and post a Request for Proposals (RFP) for a multi -family affordable housing development project on 10 acres of City -owned Housing Element Inventory Site B (APN: 689-180-012).
JUSTIFICATION OR INFORMATION:
BACKGROUND
In 2021, the City of Rancho Mirage was mandated a Regional Housing Needs Allocation ("RHNA") of 1,746 affordable housing units. The RHNA is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan. RHNA quantifies the need for housing within each jurisdiction during the specified planning period.
The City is currently in its 6t" cycle planning period as designated by the California Department of Housing and Community Development ("HCD").
The affordable housing designation is determined by the State Income Limits set annually by the Department of Housing and Community Development ("HCD). State Income Limits are set for each county in the state of California based on the Area Median Income ("AM["). Below is a table of Riverside County's 2023 income limits for affordable housing.
Income Level
Number
of Persons in Household
1 2
3 4
5 6
7 8
Acutely Low
$ 9,950
$
11,350
$ 12,800
$
14,200
$
15,350
$
16,450
$
17,600
$
18,750
Extremely Low
$ 19,600
$
22,400
$ 25,200
$
30,000
$
35,140
$
40,280
$
45,420
$
50,560
Very Low
$ 32,650
$
37,300
$ 41,950
$
46,600
$
50,350
$
54,100
$
57,800
$
61,550
Low
$ 52,200
$
59,650
$ 67,100
$
74,550
$
80,550
$
86,500
$
92,450
$
98,450
Median
$ 66,150
$
75,600
$ 85,050
$
94,500
$
102,050
$
109,600
$
117,200
$
124,750
Moderate
$ 79,400
$
90,700
$ 102,050
$
113,400
$
122,450
$
131,550
$
140,600
$
149,700
AGENDA ITEM #
DATE: July 20, 2023 Page 2 of 3
Housing Inventory Site B
JUSTIFICATION OR INFORMATION CONTINUED
The City's mandated 1,746 affordable units are divided into four income categories. Those four income categories are the following: Very -Low Income, Low -Income, Median Income, and Above Moderate Income. Below is a table showing a breakdown of how the City's mandated unit allocation is divided between the four income categories.
City of Rancho Mirage
Regional Housing Needs Allocation
Very Low
430
Low
318
Moderate
328
Above -Moderate
670
Total
1746
To demonstrate how the City intends to meet the mandated allocation over the 8-year cycle period, the City along with its consultant, Terra Nova Consulting, produced the 6t" Cycle Housing Element update. The City's Housing Element update was adopted by City Council on March 3, 2022, after approval by the City Council, HCD required minor amendments which were considered and approved by the City Council on July 21, 2022. The Department of Housing and Community Development certified the element on August 17, 2022. The Housing Element provides goals, policies, and programs to meet this requirement and identifies sites for the development of affordable housing. The City is now in its implementation phase of the Housing Element, which means that the City must now enact the goals and policies adopted.
A site identified for the development of affordable housing is Housing Element Inventory Site B.
Housing Element Inventory Site B is a 53-acre parcel zoned for 28 acres of parkland and 25 acres of high -density residential (R-H) that is owned by the City. It is located on the east side of Key Largo Avenue and is south of the Monterey Marketplace Shopping Center. The Certified Housing Element places the Affordable Housing Overlay on the residential portion of the site.
The focus of the current request is for City Council authorization for the issuance of a Request for Proposals (RFP) on the 10-acre parcel with a minimum of 200 multi -family affordable housing units per the certified Housing Element. As previously mentioned, the City is the property owner of the subject site, and a Request for Proposals would be the first step in project development. The remaining park land and 15-acres of High- Density Residential zoning would not be included in the current request and would be developed at a later date.
The issuance of the Request for Proposals implements the goals, policies, and programs identified in the Certified Housing Element. Policy H4 states, "Rental projects shall be developed through partnerships with the Housing Authority, sale of City property to qualified affordable housing developers, and private projects as they are proposed..." Program H4.A states "The Housing Authority shall consider all available options when developing rental units, including AGENDA ITEM #
11-2
DATE: July 20, 2023 Page 3 of 3
Housing Inventory Site B
JUSTIFICATION OR INFORMATION CONTINUED
hiring contractors through requests for proposals, participating in tax credit applications and other strategies as they become available." This program is focused on City -owned properties and encourages the proactive development of affordable housing within the City. The Housing Element also includes timelines for the implementation of the Policies and Programs identified.
Program H4.A for Site B (the subject site) has an implementation schedule of 2022-2023 to establish a development strategy, which the subject request would meet.
If approved, staff would draft a Request for Proposals and announce the invite for proposals from qualified, knowledgeable, and experienced developers. The announcement would be sent out via the City's a -news notification to anyone who has signed up to receive Request for Proposals notifications and to developers that have participated in the Housing Element update process.
REQUEST
Staff requests that the City Council authorize the production and posting of a Request for Proposals for a multi -family affordable housing development of a minimum of 200 units on a 10-acre parcel of Housing Element Site B.
ATTACHMENT(S):
1. Housing Element Site B Layout
AGENDA ITEM #
11-3
ATTACHMENT 1
SITE LAYOUT
(SEE ATTACHED)
11-4
Approximate Site Layout
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